A corporate bond has 2 years to maturity, a coupon rate of 4%, a face value of $1,000 and pays coupons semiannually. The market interest rate for similar bonds is 0.055.

a) What is the price of the bond (in $)?

b) What is the bond's duration?

c) If yields fall by 0.8 percentage points, what is the new expected bond price based on its duration (in $)?

d) What is the actual bond price after the change in yields (in $)?

e) What is the difference between the two new bond prices (in absolute $)?